Oil Taxation Act 1983 section 11

Qualifying expenditure: definitions and modifications for relief purposes

Section 11 of Schedule 4 defines "qualifying expenditure" in relation to foreign field assets used in the UK, and explains how certain provisions of the Oil Taxation Act 1975 are to be read differently when dealing with such expenditure.

• Expenditure meeting the conditions in paragraph 10(1)(a) and (b) of Schedule 4 is defined as "qualifying expenditure" for the purposes of the following provisions.
• When applying the tariff receipts rules in section 3 of the Oil Taxation Act 1975 to qualifying expenditure, references to tariff receipts are replaced by references to the relevant categories of chargeable receipts from UK use of foreign field assets.
• Where other (non-qualifying) expenditure on a field asset would have attracted uplift supplement under section 3(5) of the 1975 Act, the restriction in section 3(5A)(a) is disapplied for qualifying expenditure relating to that same asset.
• When qualifying expenditure falls within Part II of Schedule 1 to the 1983 Act, references to disposal receipts and tariff receipts in paragraph 8 of that Schedule are reinterpreted to refer to the appropriate categories of chargeable receipts from foreign field assets.